The factors influencing demand for vocational education and training (VET) courses in Australia by individuals, enterprises, industries, communities, and regions were examined through a review of Australian and selected international research. The following were among the key findings: (1) current definitions of "industry" may not be effectively identifying training needs; (2) motivations for participating in VET can stem from the labor market and/or from social or personal development concerns; (3) benefits from training have been understated; and (4) the public system continues to meet most demand for VET. It was concluded that achieving high levels of skills formation requires the following items: commitment from government and a large majority of enterprises; widespread public support; accountability to ensure an adequate quantity and quality of training; opportunities for all to participate; incentives for young people and workers to train; and flexible training methods. The following were among the areas identified as requiring further research: the impact of the price of VET on demand by various client groups; the desirable balance between general and job- specific education and training; and the most effective ways for meeting the increasing demand for literacy and numeracy training for individuals not currently accessing training. (Contains 117 references.) (MN)